German consumer confidence will stand at negative 25.4 points in July, down 1.2 points from the previous month, according to a report released Wednesday by market research institute GfK.
According to the report, consumer confidence remains on a path of "increasing uncertainty." At the same time, the propensity to buy increases slightly, and economic and income expectations experience losses. In addition, the report adds that the decline in consumer sentiment is due to a further increase in the propensity to save by five points. That said, the propensity to buy was well below pandemic values, at 14.6 points, and economic optimism weakened significantly after losing 8.6 points to 3.7 points.
"After eight consecutive increases, the consumer climate has suffered its first setback. Persistently high inflation rates of currently around six percent are noticeably nibbling away at households' purchasing power and preventing private consumption from making its positive contribution," Rolf Bürkl, GfK consumer expert, said.
